How to handle a salary counteroffer?

An applicant makes a counteroffer in response to an employer's compensation offer. Typically, this occurs when the applicant believes the remuneration package is excessive compared to the market. Additionally, an employee may counter their present employer if they are given a promotion and are unhappy with the new salary package associated with taking the job.

A corporation may also make a counteroffer in response to learning that a prized employee has accepted an offer from another organization. In this situation, the employer would give an employee more compensation or other benefits to remaining with the firm.

When contemplating a counteroffer, there are various things you can do to improve your chances of obtaining further compensation, as well as a few things that might work against you.

The Art of Counter-Offer Negotiation

Use the guidelines and strategies outlined in this article to make a counteroffer if your position and industry allow you to do so.

Requesting a meeting to discuss an offer is a good way to get the conversation started once you've received one.

1. Understand your worth and the market rate for your job. When negotiating your counteroffer, you must make a compelling argument for why you should get a higher offer. This argument will be based on your worth: You'll want to emphasize to the company why you're an exceptional fit, bringing experience and expertise that other applicants lack. (Employers would almost certainly prefer not to redo the interview process; they chose you for a reason!)

?The most effective negotiating strategies are based on facts, not emotion, so invest some time in study.

You may provide a range of salaries for comparable roles at different firms. Additionally, you'll want to inform employers of the position's market worth. Here's how to do a company's study, as well as some critical information about average employment benefits packages.

2. Take your time. Given the amount of information required to make a good counteroffer, it's advisable to take some time before beginning talks. Begin by writing a thank-you message for the employment offer and setting a date for your next contact.

3. Don't overlook non-wage advantages. Consider factors other than the money before crumpling your offer letter into a ball. Perhaps you get additional advantages and privileges (such as tuition reimbursement, the chance to work from home one week per month, and so forth) that offset the reduced compensation.

Or, if you don't, maybe there are other non-monetary advantages you might request in exchange for the lesser income. You may request a signing bonus, instant health care coverage if the employer has a 30-day waiting period, more vacation days, and reimbursement for relocating fees, among other things.

4. Avoid excessive exertion. Consider why you're bargaining—are you doing it because you believe the position is deserving of a higher rate, or are you negotiating for the sake of negotiating? If you are satisfied with the offer, you may not want to press too hard to get a little more. The finest employment negotiations result in a satisfactory settlement to both the employee and the employer.

5. Avoid saying too much. Certain elements will work against you while negotiating pay. The following is a list of things not to say when discussing compensation with a potential employer.

6. Determine what is essential to you. Depending on your circumstances, you're going to bargain differently. After a year of unemployment, receiving a job offer is not the same as receiving one when working in a decent position. Avoid bluffing if you are not prepared to walk away from the job offer. However, if you are fortunate enough to be evaluating two job offers, make the most of it.

7. Create a template to help you structure your request. Confused about how to begin a conversation? Review a sample counter offer letter and email message that you may modify to your specific circumstances. Ensure that your request is tailored to your specific circumstances.

Conclusion

The bargaining process could likely leave you, and your company irritated and dissatisfied. This circumstance would not occur in a perfect world since you would have understood the company's compensation expectations during the interview process and communicated your own.

Of course, the negotiating process can proceed smoothly, culminating in a counteroffer that meets all of your requirements and is acceptable to both the recruiting manager and the organization.